29 Mar 2016
S&P - Strong yen ‘threatens Japan’s fiscal turnaround’
Ratings agency Standard & Poor’s (S&P) said today that stubbornly strong Yen could “threatens the country’s fiscal turnaround” that was forged in 2013 and 2014.
“The yen’s recent strength… could stiffen headwinds holding back growth in government revenue. If the yen sustains its gains this year, improvements in fiscal deficits could come to a stop; at least temporarily…Public debt could increase by more than we currently project in the near future. Japan’s sovereign credit quality could continue its gradual slide until the government finds some other way to narrow its budget gap”, S&P said.
Earlier today PM Abe said the planned consumption tax rise to 10 per cent “will go ahead as planned”.
“The yen’s recent strength… could stiffen headwinds holding back growth in government revenue. If the yen sustains its gains this year, improvements in fiscal deficits could come to a stop; at least temporarily…Public debt could increase by more than we currently project in the near future. Japan’s sovereign credit quality could continue its gradual slide until the government finds some other way to narrow its budget gap”, S&P said.
Earlier today PM Abe said the planned consumption tax rise to 10 per cent “will go ahead as planned”.